A Conservative MP has tabled an amendment to the Finance Bill calling for a cut in the Capital Gains Tax paid by landlords if they sell a property to a sitting tenant
In the Budget earlier this year the then Chancellor announced that the 28% rate of Capital Gains Tax would be cut to 20%.
However he excluded residential property from this. The Residential Landlords Association has called for an exception to be made that would encourage landlords who are ready to sell properties to do so in a way that meets the Government’s ambitions for homeownership.
The amendment, tabled by the Conservative MP for Thirsk and Malton, Kevin Hollinrake, would cut the rate of Capital Gains Tax paid by landlords to 20% where they sell a property to a sitting tenant.
RLA research has found that 77% of private landlords would consider selling their property to tenants if the tax liability was waived. This would suggest that many might be encouraged if the tax liability was reduced.
RLA Policy Director, David Smith said: “Many landlords are now considering their future in the market following recent tax increases whilst others will be looking to sell as part of the natural churn of properties in the rental market.
“This amendment would help achieve the Government’s aim of encouraging and supporting home ownership for aspiring first time buyers whilst easing some of the excessive tax burdens recently placed on landlords.”